York County voted on the public money for Rock Hill redevelopment plan. The latest:
York County took a step Monday night toward an economic development financing plan that could help reshape downtown Rock Hill.
York County Council held a closed door, special called meeting to discuss intergovernmental agreements with Rock Hill. Afterward, the county passed the first of three readings needed to amend a tax increment financing district arrangement with the city.
Second reading, according to a release from the county, will be listed on council’s March 2 meeting agenda.
In November, Rock Hill city manager David Vehaun spoke to York County Council on the tax district, or TIF, changes needed to bring in more than half a billion dollars of redevelopment. The idea, Vehaun said then, was to combine two downtown tax districts in the city and raise the amount a new, combined district could borrow to pay for public improvements like parking decks.
The thought behind the districts is to borrow against expected future revenue from redevelopment in targeted areas, to build public infrastructure on the front end that would attract redevelopment. The city and county have used similar arrangements in planning Riverwalk and the coming Carolina Panthers headquarters site.
Vehaun told council that existing caps on textile and downtown tax districts at a combined $60 million aren’t enough for the development already announced in Rock Hill. Parking decks, a pedestrian bridge and other improvements will take about $85 million in public money, he said.
“These were put in place many years ago without having a real sense of exactly how much investment would be coming, what that investment would look like and the kind of public support that would be needed,” Vehaun told council in November.
In December, Mayor John Gettys addressed the Rock Hill Economic Development Corporation with a call to the county to work with the city toward $2.5 billion worth of economic development combining the downtown plans with the Panthers site. Gettys said the city carries all the financial risk but the county and school district, as taxing entities, have to come in to make needed changes.
He spoke in favor of an expedited decision, since many of the downtown projects already announced rely on federal opportunity zone credits requiring action in early 2020.
“The only thing we’re lacking to make all this happen is a sense of urgency,” Gettys said in December.
York County Council members, though, said they wanted their own financial review of the tax district setup and didn’t want to rush judgment on something that could impact the financial stability of the largest municipality in the county. The existing TIF districts run through 2039.
“From a county perspective we’d like the largest municipality in the county not to be in a financial crunch in 19 years,” Council Chairman Michael Johnson said in November.
The agreement that passed first reading Monday night would combine the downtown and textile corridor districts. It allows up to $85 million in future TIF bonds, minus unspent bond proceeds as of a final agreement date. The $85 million includes $12.7 million of debt from the two existing districts.
The $72.3 million remaining in TIF-bonded debt capacity could be used for parking at White and Wilson streets ($24.5 million according to the agreement), the University Center area ($16.3 million), Main Street and Dave Lyle Boulevard ($13 million), White and Dave Lyle (one at $7 million, another at $2 million), a pedestrian bridge over Dave Lylie ($6 million) and other projects.
The new agreement still would have the districts run through 2039. The agreement makes several requirements that the city report property transfers, development agreements and similar items to the county on an ongoing basis.
Some of the downtown Rock Hill redevelopment plans already announced include continued work at University Center, a Cambria hotel, the former city power plant, The Thread to replace the former Rock Hill Printing and Finishing Company site, The Exchange at Old Town Depot replacing the former Good Motor Co. site and more. The projects combine to add apartments, restaurants, retail, commercial and other new space.